US close: S&P 500 and Nasdaq register new record closes

(Sharecast News) - Major indices ended sharply higher on Thursday, with the S&P 500 and Nasdaq Composite both registering fresh record closes.

At the close, the Dow Jones Industrial Average was up 1.62% at 49,652.14, while the S&P 500 advanced 1.02% to 7,209.01 and the Nasdaq Composite saw out the session 0.89% firmer at 24,892.31.

The Dow closed 790.33 points higher on Thursday, more than reversing losses recorded in the previous session after the Federal Reserve opted to leave interest rates unchanged, holding its benchmark federal funds rate at 3.5-3.75% in a meeting that could potentially be Jerome Powell's last as chair.

While the decision was widely expected, with markets fully pricing in no change, the vote proved unusually divided, with the Federal Open Market Committee split 8-4 as policymakers differed over how to communicate the outlook for future policy moves.

Tech earnings were firmly in focus on Thursday, with Microsoft trading lower in early action, even as revenue grew 18% to $82.89bn and net income jumped from $25.82bn to $31.78bn, while Google parent company Alphabet posted first-quarter revenues that topped expectations on the back of its surging cloud business.

Amazon reported better-than-expected quarterly earnings and revenue as its cloud sales topped expectations, while shares in Facebook parent company Meta headed south after the firm reported lower-than-expected capex and missed user growth targets.

As far as Thursday's earnings slate was concerned, Eli Lilly, Caterpillar and Merck all delivered strongerthanexpected firstquarter results on Thursday, with each company reporting earnings that topped forecasts on the back of robust product demand. Eli Lilly posted a sharp jump in revenue as sales of its weightloss drug Zepbound and diabetes treatment Mounjaro continued to surge, while Caterpillar reported higher profit driven by solid demand for its powergeneration and construction equipment, lifting its shares in early trade. Merck also beat expectations, supported by ongoing strength in its cancer immunotherapy Keytruda and contributions from newer medicines.

After the close, tech giant Apple posted fiscal secondquarter earnings that beat Wall Street expectations, driven by continued growth in its services division, though iPhone sales once again fell short of forecasts. Apple delivered earnings per share of $2.01 each, ahead of the $1.95 expected, while revenues came in at $111.18bn versus estimates of $109.66bn. iPhone sales missed expectations for the second time in three quarters, marking the only major line item to undershoot analysts' forecasts in the latest update.

Oil prices pulled back on Thursday, with Brent crude falling 3.41% to settle at $114.01 a barrel and West Texas Intermediate down 1.69% at $105.07, following gains in the previous session, when crude rose amid elevated tensions between the US and Iran. The Wall Street Journal, citing US officials, reported that Donald Trump had instructed aides to prepare for an extended blockade of Iran, adding to geopolitical pressure in the market.

On the macro front, US consumers saw price pressures pick up in March as the conflict in Iran pushed oil sharply higher, adding to the Federal Reserve's interest rate policy woes. According to the Bureau of Economic Analysis, the core personal consumption expenditures price index, which strips out volatile fuel and grocery costs, rose 0.3% month-on-month, taking the annual rate to 3.2%. Headline PCE increased 0.7% on the month and 3.5% yearonyear, in line with expectations but still well above the central bank's 2% target.

Elsewhere, US economic growth accelerated in the first quarter, with preliminary figures showing GDP rising 2% as higher government spending and stronger domestic investment helped offset a slowdown in consumer demand. The Bureau of Economic Analysis' Q1 reading follows a 0.5% rise in the final quarter of 2025, when activity was held back by a sharp contraction in federal spending after largescale government layoffs. The advance estimate captures only the first month of the war, though its impact on energy markets has been immediate.

On another note, personal income rose by 0.6% month-on-month in March, beating expectations of a 0.3% uptick, while personal spending rose by 0.9% month-on-month to $195.4bn, accelerating from an upwardly revised 0.6% increase in February and landing in line with market expectations.

Still on data, Americans lined up for unemployment benefits at a decelerated pace in the week ended 25 April, according to the Labor Department, dropping to the lowest reading since 1969. Initial jobless claims fell by 26,000 to 189,000, defying expectations for a print of 215,000. Continuing claims fell by 23,000 to 1.78m, their lowest reading in twelve months, while the four-week moving average, which aims to strip out week-to-week volatility, decreased by 3,500 to 211,000. Meanwhile, the advance seasonally adjusted insured unemployment rate was 1.2% for the week ended 18 April, unchanged from the previous week's unrevised rate.

Finally, the Chicago purchsing managers index fell to 49.2 in April, according to the Institute for Supply Management, down from 52.8 in March and below market estimates for a reading of 53.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Caterpillar Inc. (CAT) $890.11 9.88%

Intel Corp. (INTC) $94.48 7.78%

Cisco Systems Inc. (CSCO) $91.50 4.20%

Amgen Inc. (AMGN) $346.25 3.30%

Verizon Communications Inc. (VZ) $48.03 3.05%

Walt Disney Co. (DIS) $103.75 2.42%

Dow Chemical Co. (DOW) $40.49 2.38%

American Express Co. (AXP) $323.05 2.34%

Boeing Co. (BA) $229.03 2.20%

Goldman Sachs Group Inc. (GS) $923.77 2.01%

Dow Jones - Fallers

Microsoft Corp. (MSFT) $407.78 -3.84%

Salesforce.Com Inc. (CRM) $176.53 -2.59%

Merck & Co. Inc. (MRK) $109.18 -1.60%

Visa Inc. (V) $329.84 -1.50%

Coca-Cola Co. (KO) $78.76 -0.14%

Unitedhealth Group Inc. (UNH) $370.48 -0.07%

S&P 500 - Risers

QUALCOMM Inc. (QCOM) $179.58 17.44%

Quanta Services Inc. (PWR) $727.77 15.78%

Skyworks Solutions Inc. (SWKS) $70.17 14.26%

Alphabet Inc. Class A (GOOGL) $384.80 10.47%

Qorvo, Inc. (QRVO) $94.22 10.29%

Alphabet Inc. Class C (GOOG) $381.94 10.23%

Iron Mountain Inc (New) (IRM) $125.99 10.02%

Caterpillar Inc. (CAT) $890.11 9.88%

Eli Lilly and Company (LLY) $934.60 9.80%

O'Reilly Automotive Inc. (ORLY) $99.40 9.52%

S&P 500 - Fallers

Flowserve Corp. (FLS) $73.64 -12.59%

Willis Towers Watson Public Limited Company (WTW) $256.20 -11.24%

International Paper Co. (IP) $30.42 -9.41%

Meta Platforms Inc. (META) $611.91 -7.83%

Teleflex Inc. (TFX) $123.91 -7.04%

Nvidia Corp. (NVDA) $199.57 -5.27%

Incyte Corp. (INCY) $95.27 -5.01%

Cardinal Health Inc. (CAH) $192.88 -4.90%

Mastercard Incorporated (MA) $502.92 -4.25%

Broadridge Fin Sol (BR) $153.98 -4.21%

Nasdaq 100 - Risers

QUALCOMM Inc. (QCOM) $179.58 17.44%

Skyworks Solutions Inc. (SWKS) $70.17 14.26%

Alphabet Inc. Class A (GOOGL) $384.80 10.47%

Alphabet Inc. Class C (GOOG) $381.94 10.23%

O'Reilly Automotive Inc. (ORLY) $99.40 9.52%

Intel Corp. (INTC) $94.48 7.78%

NetEase Inc. Ads (NTES) $117.51 6.47%

Expedia Group Inc. (EXPE) $248.37 5.94%

Microchip Technology Inc. (MCHP) $92.91 5.81%

Cisco Systems Inc. (CSCO) $91.50 4.20%

Nasdaq 100 - Fallers

Check Point Software Technologies Ltd. (CHKP) $112.47 -18.74%

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Meta Platforms Inc. (META) $611.91 -7.83%

Nvidia Corp. (NVDA) $199.57 -5.27%

Incyte Corp. (INCY) $95.27 -5.01%

Microsoft Corp. (MSFT) $407.78 -3.84%

KLA-Tencor Corp. (KLAC) $1,750.35 -3.46%

Charter Communications Inc. (CHTR) $165.17 -2.90%

Henry Schein Inc. (HSIC) $74.59 -2.01%

Cognizant Technology Solutions Corp. (CTSH) $52.90 -1.93%